Proposed Rule Creates New Changes for ED Grantees
Proposed changes to the U.S. Department of Education’s (ED) grant regulations could make federal discretionary funding less predictable for states, districts, universities, and other organizations administering special education programs.
The proposed rules would expressly allow ED to terminate discretionary grants for convenience, clarify that a multiyear award does not guarantee funding in subsequent years, and permit the department to reduce continuation awards based on unspent or unobligated balances. The proposal also would make ED’s grant regulations broadly severable, supporting the department’s position that if a court invalidates one provision, the remaining provisions should continue in effect.
Additionally, ED would no longer be required to publish discretionary grant competitions, priorities, maximum award amounts, and certain other grant information in the Federal Register. This change would require grantees to rely more heavily on Grants.gov to monitor grant activity and related federal education policies.
Together, these changes could make long-term planning, staffing, and program sustainability more difficult for ED discretionary grant awardees, while increasing the importance of closely tracking expenditures, continuation decisions, shifts in federal priorities, and new funding opportunities.
Comments on the proposed rule changes are due on or before September 23, 2026.